Crisis Grips European Hedge Funds

The manager of one of Britain’s biggest hedge funds said: “It’s been an extraordinary week. Even in the crash of 1987 I don’t remember so much carnage.” . . . One manager said: “Since market losses are magnified by leverage in a hedge fund, there can be a sudden need for a cash injection. But this time, the banks can’t lend as easily. Funds are then forced to sell, which causes even more problems.” http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3256253.ece

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